Legal English Online - International Oil and Gas Law Conference

Fidic Construction Contracts

4 Courses - 4 levels of expertise: 30 hours, 60 hours, 90 hours, and 120 hours

This group of courses will teach you about FIDIC Contracts and handling Contract Claims under FIDIC rules. It will help you to understand the philosophy of the FIDIC contracts, learn different clauses, the requirements, roles and responsibilities, of the different parties involved in FIDIC contracts. The courses concentrate on managing contracts and understanding contract responsibilities. It provides a strong knowledge base for anyone who works with FIDIC contracts and is tailored to provide 4 different levels of knowledge and skills in dealing with FIDIC Contracts and managing FIDIC Construction projects.

The courses are designed to give you the confidence to work with these contracts whether representing employers, consultants or contractors. To ensure that you get the most out of the course, you will also have the opportunity to complete assignments and review case studies to help you understand the application of the FIDIC clauses.

Those with existing knowledge of the FIDIC forms of contract will be able to enhance their skills and understanding. Those new to the contracts will gain in-depth knowledge including how the contracts are administered, the differences between the contracts, which contract to use and the responsibilities and obligations of the parties.

There are 4 levels of the course: Award Level (30 hours of lessons), Certificate Level (60 hours of lessons), Diploma Level (90 hours of lessons), Extended Diploma Level (120 hours of lessons). The Course structure and core topics remain the same throughout all 4 levels of the course, however, the amount of detail and practical applications of the course increase exponentially as the level of the course rises. Extended Diploma Level is generally regarded as a step on the path to obtaining a Law Degree or LL.M in Construction Law.

Award Level is suitable for back-office staff working in a Construction company and also for lawyers who may be required to advise clients and require an understanding of the obligations, responsibilities, and powers of the different parties to the Contract, together with a general understanding of how the different FIDIC Contracts work.

Certificate level is suitable for management support staff required to carry out Employer’s, Contractor’s, or Engineer’s instructions and for lawyers who will have to advise on the different legal implications, duties and responsibilities of different exit strategies from the selected contract model.

Diploma Level is suitable for Lawyers, Employer’s Representatives, Management, Engineers, and Contractors who require a detailed understanding of the different obligations, responsibilities and implications of the different contracts in the FIDIC Suite of Contracts, together with a detailed understanding of the respective powers of the different parties in the Contract.

Extended Diploma Level is suitable for Lawyers, Employer’s Representatives, Management, Engineers, and Contractor‘s staff who are intending to make this area of law and industry their career – This level of the course carries 6 points towards the award of an LL.B or LL.M in many Universities around the World. This level of the course will equip the participants with a detailed knowledge of the legal implications of the Contract and a strong practical ability to manage FIDIC Contract projects from inception through to post-completion and to deal with all stages in-between, including dispute resolution, DAB’s, and Arbitration. This level of the course should be regarded in the same light as a professional qualification and will require the same level of study and application as 2 University Law Modules.

Course content

  • FIDIC Contract Documents: Introduction & Principles
  • Responsibilities of the Main Parties
  • Management of Projects
  • Tests on Completion
  • Financial Clauses & Procedures
  • Suspension & Termination
  • Risk, Liability & Force Majeure
  • Claims, Disputes & Arbitration

Upon successful completion of any one of these courses, you will be able to understand and apply the following learning objectives:

  • Learn the practical use of FIDIC conditions of contracts
  • Understand the steps needed before signing the contract
  • How to apply FIDIC conditions of contracts to manage variations, claims and dispute resolution
  • Understand FIDIC contract related documents
  • Become knowledgeable about tests on completion and financial procedures
  • Understand what is completion and what are the liabilities applicable after completion of construction

 

Course Overview

The Construction Process in its entirety

i. Description

ii. Procedure

iii. Programme

iv. Potentials for delay

v. Potentials for dispute

vi. The need for Contract and Contract Administration

vii. Conclusion What Contract should be recommended?

 

Module 1 International Legal systems and basic contract law concepts

Legal concepts relating to contract law and how contracts work. Language and terminology of law and problems with international translation and understanding, Legal rules used to clarify gaps in the law, Common Law, Civil Codes in Europe, Sharia Contract law principles, Mandatory legal rules, Rules of contract interpretation.

Module 2 Conflict of Laws

Which system of law to apply to the contract, Identifying the jurisdiction, Identifying the conflict of laws rules, Classification of the issues – tort, contract, pre-contract, powers of attorney, formal requirement issues, Selection of the rule of conflict laws.

Module 3 English and International Standard Forms of Contract

FIDIC suite of contracts, NEC contracts, SIC contracts

Module 4 Civil Law Business Terms

Standard business law terms, INCO terms, Translation problems of legal and business terminology

Module 5 Development Stages

Understanding FIDIC: A Civil Law Approach - pre-tender duties including scrutiny of employer’s documents and requirements, site surveys and visits, Pre-contract design, final design, completion of the works, remedying of defects, Post contractual liabilities, operation and maintenance services

Module 6 FIDIC Contract Documents

FIDIC suite of contracts - Red book, Yellow book, Silver book, Purple book, Blue book, White book, Gold book, Green book

Module 7 Employer’s Duties

Access to the site, Possession of the site, Arrangements for payments, Paying the contract price, Disclosing site data,Cooperating with contract,Compensation for additional cost and disruption

Module 8 Contractor’s Duties

Pre-contract duties, Post-contract duties, Completion of the works, Remedying defects (red book), Design responsibilities (yellow book and silver book), Remedying of defects, Operation of the works (gold book)

Module 9 Design Responsibility

Red book responsibility, Yellow book responsibility, Silver book responsibility, Gold book responsibility, Employers design, Engineers design

Module 10 Engineer’s Duties, Powers and responsibilities

Employer’s agent, Employers representative, Professional representative duties, Duty to act fairly, Engineers determinations relating to cost and time

Module 11 Time for Completion

English concept of time for completion, Clause 8 of the FIDIC conditions, Calculation of time for completion, Delay damages, The building time float you, Liquidated damages, Take over certificate, Rectification of problems

Module 12 Variations

Clause 13 of FIDIC, Procedures for variation orders, Engineers powers,

Variations in general - i Changed conditions and circumstances, ii Mistaken presumptions of existing circumstances, iii Changed quantities, iv Technical innovations, v Changed requirements of employers, vi Technical errors. Cooperation with other contractors

Module 13 Tests

Testing procedures i Pre-commissioning tests, ii Commissioning and operational tests,

Iii Trial operation tests, iv Gold book tests on completion of design, v Standard sequence of testing, vi Tests before completion, vii Tests on completion

Module 14 Certificates

Importance of the certificates, Completion certificate, Take over certificate, Payment certificate, Insurance certificate, Engineers role in issue of certificates, Retention money

Module 15 Defects Notification Period and (Post Contractual) Defects Liability

Clause 11 of FIDIC, Before or after issue of take over certificate, Duration of defects notification period, Duty to Remedy and Search, Contractor’s remedies for delay/failure to issue take over certificate

Module 16 Termination

Effect of termination, Termination for cause, Termination without cause, Service of notices, Remedy periods, Failure to comply with termination clause, Costs of materials and work, Doctrine of part performance/quantum merit, Impossibility, Unbearable delay

Module 17 Discharge, Frustration and Force Majeure

Risk and risk allocation under FIDIC, Risk assessment, Risk allocation, Effect of discharge of contract, Difference between frustration and impossibility, Force majeure circumstances,

Duty of mitigation

Module 18 Risk, Insurance and Exceptional Risk

Understanding risk, Difference between risks and hazards, Types of risks, Methods of dealing with risk, Legal risk allocation, Insurance, Bonds, Indemnities, Third-party Guarantees,

The Moorcock law case and its legal doctrines

Module 19 Bonds, Guarantees, Letters of Credit

Use of securities in construction industry, Civil law securities, Common law securities, Letters of credit, Performance bonds, Guarantees in FIDIC, FIDIC performance Security, FIDIC advance payment security

Module 20 Claim Management

FIDIC Procedural Rules, Claim Review and Preparation, Claim Notice, Documentation Requirements, Presentation of Claims, Claim Avoidance, Extension of Time Claims, Money Claims, Cost, Profit, Loss of Productivity Claims, Legal Claims, Gold Book

Module 21 Disputes

Disputes in FIDIC contracts, Graduated in dispute resolution methods, Engineers determination, Mediation, Dispute review, Dispute adjudication, Non-binding arbitration, Function and role of DAB’s, Appointment of DAB, Dispute adjudication agreement, Dispute avoidance, Referral of disputes, Jurisdiction and procedure, Applicable law and decisions, Binding effects of DAB decisions

Module 22 Sample forms and delay schedule

i. Notice of Commencement Date, ii Notice of an Event or Circumstance, iii Notice that Work

is Ready, iv Notice of Approval, v Instruction, vi EOT Claim Following Variation, vii Rejection of Work, viii Application for Taking-Over Certificate, ix Letter from Engineer if Employer’s Approval Is Late, x Determination, xi Notice of Dissatisfaction with a Determination of the Engineer , xii Notice of Referral of Dispute, xiii Chairman of the DAB to Parties, Establishment of the Procedure xiv Notice of Dissatisfaction with a Decision of the DAB,

xv Addendum, xvi Delay Schedule

 

WHO SHOULD ATTEND

  • Corporate counsel and engineers from companies involved the Construction Industry;
  • Practicing lawyers;
  • Legal practitioners advising Construction, and Oil and Gas companies;
  • Business people involved in the Construction Industry.

 

INSTRUCTORS

All the instructors are either qualified British lawyers with experience of the Energy Industry or qualified Engineers with any years of experience in providing FIDIC Contract training. The lead trainer is Richard Brady, the head of the British legal centre who has many years of experience dealing with Construction Contracts in the Middle East.

Find more information about Richard, including his CV.